Mullingar-based medical device company Ostoform has raised €3 million in investment, with growth capital investor BGF leading the round.
It was also supported by Enterprise Ireland and existing investors including HBAN MedTech.
Ostoform, which was spun out of the University of Limerick in 2018, designs and manufactures medical seals for use with patients who have received a colostomy, ileostomy or urostomy.
Chief executive and founder Kevin Kelleher said the investment was "a landmark equity raise" for the company that would enable it to capitalise on growing international opportunities for its existing and pipeline products.
Ostoform was awarded €2.7 million earlier this year to support its product development, through the Disruptive Technologies Innovation Fund (DTIF).
New board member
The investment sees BGF's Mark Sykes join the board of Ostoform. Ray Cantwell will remain as non-executive chairman, while Paul Gilson will stay on as non-executive director.
“Ostoform is a great example of Irish innovation in the medtech sphere, with their solutions having the potential to significantly improve the daily qualify of life for ostomy patients,” said Mr Sykes. “The company has huge potential, and we are looking forward to working with Kevin and the team as they build out the business over the coming years.”
This is the second equity investment in an Irish medtech company by BGF this year. In February, BGF invested €6 million in Vasorum, a Dublin based high-growth medical device business specialising in sophisticated devices used to close arterial punctures in vascular, cardiology, radiology and neuro-radiology procedures.
BGF is supported in Ireland by the Ireland Strategic Investment Fund (ISIF) and the main Irish banks. This is the second Irish medtech investment for BGF in 2021, with the first in February with a €6 million investment in Dublin-based Vasorum.
"Despite the disruption caused by Covid 19 we continue to see a very strong pipeline of companies interested in our support," said Leo Casey head of BGF in Ireland. "This is our third investment this year and the ninth equity investment we have made in Ireland in less than three years and we expect to close further transactions in the coming weeks."